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Ad libitum [116K]
3 years ago
14

You are bullish on Telecom stock. The current market price is $100 per share, and you have $15,000 of your own to invest. You bo

rrow an additional $15,000 from your broker at an interest rate of 6.0% per year and invest $30,000 in the stock. a. What will be your rate of return if the price of Telecom stock goes up by 8% during the next year? (Ignore the expected dividend.) (Round your answer to 2 decimal places.)
Business
1 answer:
likoan [24]3 years ago
7 0

Answer:

10%

Explanation:

Value of investment in the beginning = $30,000

Value of investment at the end = $30,000 (1 + 0.08)

                                                    = $30,000 × 1.08

                                                    = $32,400

Interest paid = $15,000 × 6%

                     = $900

Rate of return:

=\frac{Value\ at\ the\ end-Value\ in\ beginning-Interest}{Total\ amount-Borrowed\ amount}\times100

=\frac{32,400-30,000-900}{30,000-15,000}\times 100

=\frac{1,500}{15,000}\times 100

      = 10%

Rate of return is 10% if the price of Telecom stock goes up by 8% during the next year.

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balance the rights of both parties

Explanation:

Based on the information provided within the question it can be said that in a situation like the one being described a court will generally balance the rights of both parties. This is done in order to make sure that both parties are being treated fairly and investigate both sides of the case before making a decision in regards to who is in the right and who is in the wrong.

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3 years ago
Which is true among the following statements on visualization?
Mila [183]

Answer:

d. All people respond better to visual information than text.

Explanation:

  • Visualization refers to an image of an object, situation or event, or any chart in the human mind. Visualization is the creation of a mental image of an object, image or situation in one's mind.
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3 years ago
Why is scarcity a fundamental problem in economics
KATRIN_1 [288]

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Explanation:

Society would produce, distribute, and consume an infinite amount of everything to satisfy the unlimited wants and needs of humans.

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2 years ago
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Provide system developers with a good understanding of system requirements. Define the limits of the system (delimit it).

Provide a basis for planning the technical content of the iterations.

Provide a basis for estimating the cost and time to develop the system.

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3 years ago
You supply a good at a price of $5. You also earn a profit at this price. This means that your marginal cost could be _____.
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<span>You supply a good at a price of $5. You also earn a profit at this price. This means that your marginal cost could be less than $5.
Hope it helps.
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3 years ago
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